There is perhaps no one who understands cryptocurrency investing as well as self-made bitcoin millionaire Joseph O’Connor. Well known in cryptocurrency circles for understanding the ins and outs of bitcoin investment, Joseph O’Connor has made quite the name for himself by his early twenties.
If you’ve been thinking about getting into cryptocurrency investment, and how to do so the right way, then you’re in the right place. Cryptocurrency investing can seem overwhelming for beginners, but when it is broken down it becomes much easier to understand and you can properly get into cryptocurrency investment. We spoke to the expert to find out how best to get started.
Where to Start
In order to invest in cryptocurrency there are a few things you will need before you can actually buy. This includes a digital wallet, an appropriate payment method i.e. a bank account, debit card, or credit card, an account on a crypto exchange, proof of identification, and a secure internet connection.
Get a Digital Wallet
You will first need a digital wallet to securely store your cryptocurrency like bitcoin or ether, etc. This can either be a software wallet or a hardware wallet. Software wallets are applications that have the ability to connect with your bank account which allows you to easily access your cryptocurrency whenever you need to.
These do, however, require you to put your currency in the care of a third-party company, and although they are many trusted third parties out there, they have been subject to cyber-crime in the past.
A hardware wallet on the other hand are seen to be more secure as they are offline, so cannot be accessed by hackers. Your private key to your cryptocurrency is stored on a physical device, much like how you would store important data on a flash drive.
It’s important to note that your private key isn’t something that can be reset, so it’s best kept physically and kept in a safe, memorable place.
Connect a Payment Method
Whichever type of digital wallet you choose, you then need to connect it to an appropriate method of payment. Bank accounts, debit cards, and credit cards all allow you to buy cryptocurrency, however they will each come with their own limitations.
If you connect your wallet to a traditional bank account, transactions can take up to five days to process. Despite this, a bank account will allow you to both buy and sell your cryptocurrency and have that money put straight into your account. Connecting a bank account is the best option for first-time investors, or if you are looking to deal with large sums.
Conversely, connecting with a debit or credit card will allow you to exchange funds practically instantly, but you will not be able to sell crypto or put money straight into your bank account from your digital wallet.
Join an Exchange
The simplest way to invest in cryptocurrency is to open an account with a crypto exchange. These are online ‘stores’ which provide different types of cryptocurrency in exchange for traditional currencies. It is important to do your research into the various exchanges available as they are likely to all offer different services with different terms, even if they offer the same types of crypto. Look out for high levels of security, reliability, reputation, exchange rates, and processing fees.
It is also worth noting that not all exchanges accept all countries on their platform, find one that allows you to buy cryptocurrency where you live. Once you have registered with a crypto exchange, you are ready to invest in cryptocurrency.
It’s worth noting that you can also find peer-to-peer exchanges, but you are more open to being scammed, so do your research on exchanges before you make your first transaction.
Properly investing in cryptocurrencies is beneficial in the long term – as Joseph O’Connor’s success has proven, but it needs to be said that there are high levels of risk when investing – whether it be cryptocurrency or stocks, so only invest if it’s money you don’t need. Ideally, that money will stay in the form of bitcoin for some time to come, so don’t use it as a get rich-quick scheme.